Fixed Deposits (FDs) have long been a popular investment option for those seeking stable and assured returns. In a new development, a private bank has launched an FD scheme that allows customers to invest starting from just Rs 1,000, with the convenience of UPI transactions. This move aims to make fixed deposits more accessible to a wider audience, including young investors and those with smaller savings.
New Fixed Deposit Scheme Launched by Private Bank
| Feature | Details |
|---|---|
| Bank | Private Bank (Partnering Small Finance Banks) |
| Minimum Investment | Rs 1,000 |
| Interest Rates | Up to 9.5% (varies by tenure & age) |
| Deposit Insurance | Covered up to Rs 5 lakh (DICGC) |
| Investment Process | Fully digital via UPI payments |
| Best For | Young investors, small savers, digital users |
This new FD scheme offering investments from Rs 1,000 via UPI is an excellent opportunity for small savers, young investors, and digital users looking for safe, high-return investments. With competitive interest rates of up to 9.5%, 100% digital processing, and DICGC insurance, it provides a secure and convenient way to grow your savings.
Why This FD Scheme Stands Out
1. Low Minimum Investment
Traditionally, banks required a higher deposit amount to open an FD. With this scheme, you can start investing with just Rs 1,000, making it easier for small investors and first-time savers.
2. High Interest Rates – Up to 9.5%
Depending on your tenure and age group, you can earn competitive interest rates on your FD. For example:
- Senior citizens can earn 9.5% interest for a 3-year tenure.
- General investors can get 7-8% interest for various durations.
3. 100% Digital Process with UPI Payments
Investing in FDs has never been easier. You can complete the entire process online, without visiting a branch. The steps are simple:
- Download the official banking app or use a partner app.
- Complete e-KYC (Aadhaar-based verification).
- Choose your FD tenure & amount.
- Pay using UPI and confirm your investment.
4. Safe & Secure – DICGC Insurance Cover
Your deposit is insured up to Rs 5 lakh under the Deposit Insurance and Credit Guarantee Corporation (DICGC), ensuring peace of mind.
see also: Highest Fixed Deposit (FD) Interest Rates in 2025 Best Banks for Maximum Returns
Step-by-Step Guide to Investing in This FD
Step 1: Choose the Right FD Scheme
Before investing, check the interest rates, tenure options, and any special offers available for different deposit amounts.
Step 2: Open an FD Online
Most banks and financial apps now allow you to open an FD through their digital platforms. Simply follow these steps:
- Log in to the bank’s official website or mobile app.
- Go to the FD section and select ‘Open New Fixed Deposit’.
- Enter the deposit amount (minimum Rs 1,000) and choose a tenure.
- Provide KYC details (if required) for verification.
Step 3: Complete Payment via UPI
Once you’ve selected your FD options, you can complete your investment using UPI payments, which makes it quick and hassle-free.
Step 4: Track and Manage Your FD
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After successful booking, you can track your FD online, check interest earnings, and even opt for auto-renewal or premature withdrawal (if applicable).
Who Should Invest in This FD?
This FD scheme is ideal for:
- First-time investors looking for a safe, small-scale investment.
- Young professionals & students who want to start saving early.
- Senior citizens seeking higher interest rates with secure returns.
- Salaried individuals who prefer stable earnings without market risks.
Pros & Cons of This FD Scheme
Pros:
Low investment requirement – Start with Rs 1,000. High interest rates – Up to 9.5% for seniors. Digital convenience – No branch visits, easy UPI payments. Safe investment – DICGC insurance up to Rs 5 lakh. Flexible tenure options – Short- & long-term choices.
Cons:
Interest rates may change based on tenure & market conditions. Premature withdrawal penalties may apply. Not as liquid as savings accounts – Lock-in period applies.
see also: RBI Repo Rate Reforms Does It Affect Your Fixed Deposit Interest Rate?
New Fixed Deposit Scheme Launched by Private Bank FAQs
1. How do I apply for this FD online?
You can apply through the bank’s official app or website, complete the KYC process, choose your tenure, and pay using UPI.
2. Is my money safe in this FD?
Yes! The deposit is insured up to Rs 5 lakh by DICGC, ensuring protection.
3. Can I withdraw my FD before maturity?
Yes, but premature withdrawal penalties may apply, which can reduce your returns.
4. Are there any tax benefits on this FD?
Interest earned above Rs 40,000 (Rs 50,000 for seniors) is taxable under TDS (Tax Deducted at Source).
5. Can NRIs invest in this FD?
It depends on the bank’s policy. Some banks allow NRE/NRO FDs, while others restrict non-resident investments.
